(The Kansas City Star posted the following article by Randolph Heaster on its website on April 11.)
KANSAS CITY — After two delays, Kansas City Southern has filed its annual report for 2005, reporting higher annual earnings than previously stated.
In a filing Friday with regulators, Kansas City Southern said it earned for common shareholders $91.4 million, or $1.10 a share, on revenue of $1.35 billion. In its original report in early February, Kansas City Southern said it earned $84.9 million, or $1.03 a share, for common shareholders last year.
The change was made after Kansas City Southern completed integrating its Mexican railroad into its consolidated financial statements. Kansas City Southern de Mexico became the company’s wholly owned subsidiary last year after reaching deals to buy out its Mexican partner as well as the Mexican government.
The company’s stock rose 7 cents a share in trading Monday on the New York Stock Exchange, closing at $24.06.
Kansas City Southern’s annual report was submitted four days after the company announced a second delay in filing its Form 10-K. On April 3, Kansas City Southern said it could not estimate when it would file its 10-K but was working to do so as soon as possible.
On Wednesday, Moody’s Investor Service placed Kansas City Southern’s debt ratings under review, affecting about $1.9 billion in debt. The credit ratings agency said the review was prompted by Kansas City Southern’s delay in filing its 10-K.
A Moody’s official could not be reached for comment Monday. Kansas City Southern had not received additional word from Moody’s by late Monday, said company spokesman Bill Galligan.
In other developments, Kansas City Southern said it has received regulatory approval to proceed with a joint venture with Norfolk Southern on a key southern route.
The U.S. Surface Transportation Board concluded its environmental review, giving the railroads regulatory approval as of Monday, both carriers said.
In December, Norfolk Southern agreed to invest $300 million to boost capacity and improve service on the Meridian Speedway, Kansas City Southern’s 320-mile line between Meridian, Miss., and Shreveport, La. The line is considered crucial for transporting rail freight between the Southeastern and Southwestern portions of the country.
Both railroads expressed satisfaction at the regulator’s approvals.
Also on Monday, Kansas City Southern said it would report its first-quarter earnings on May 2 before the opening of trading.